MGX Minerals Inc (CSE: XMG, OTCQB: MGXMF) says joint venture partner Power Metals Corp has received initial assays from Case Lake property drilling in Ontario, where it has been impressed with grades and widths.
A definitive agreement with Power over the acquisition of its assets was finalised in September, including all of Power's current US Petrolithium brine assets.
MGX also took a 20% working interest in all of Power's current hard rock assets and any future assets that the firm acquires. These are at Case Lake, Paterson Lake, Gullwing-Tot Lake and Larder River - in Ontario.
Case Lake consists of five dykes: North, Main, South, East and Northeast Dykes.
High grade intervals
Power said drilling has hit three wide high-grade lithium (Li) and tantalum (Ta) mineralized intervals including 1.94 % Li2O (lithium oxide) and 323.75 ppm Ta (parts per million tantalum) over 26 metres (m).
Power Metals has now completed 35 holes of a 5000m program on the Main, North and South Dykes in a bid to extend the lithium mineralization in the Main and North Dykes along strike and down dip.
Tantalum metal is used to make electrolytic capacitors for the electronics industry and is used in mobile phones, personal computers and video games.
Impressed by the widths..
“We are impressed by the widths and grades of the lithium mineralization in the Main Dyke. The tantalum mineralization is a nice extra bonus to the lithium mineralization," said Dr. Selway, the vice-president of exploration.
Johnathan More, the chairman of Power Metals added:
"We are thrilled from this first batch of assays. This represents a very small portion of holes drilled to date and we are eager to see more results as we receive them from the lab.
"The high-grade Tantalum is a huge bonus to PWM as we remain focused on the high-grade lithium.”
MGX shares in Toronto were unchanged at C$0.96 each.